Manila, Philippines; 1 July 2011 – The shareholders representing over 67% of total ownership in listed technology conglomerate IPVG Corp. (PSE: IP) have approved a new plan presented by CEO Enrique Y. Gonzalez, which was supported by the Company’s board of directors.
Under the proposed new plan, the shareholders approved the transfer of all assets and liabilities of IPVG to a new private company, which will have the exact same ownership structure as that of IPVG. The purpose of the restructuring plan is to increase shareholder value and raise more cash for the Group.
At present, IPVG’s current share price is not reflective of the underlying values of the Company.
“By replicating IPVG under a private scheme, we can properly value based on net asset value (NAV) method and we can tap private equity,” says Enrique Gonzalez. “Our Group has evolved much over the years. In the beginning, we incubated all these start-up businesses under IPVG. It made sense to bulk-up and raise money at the parent level during those early years. Now that we have grown into a full-blown Tech Conglomerate, our subsidiaries are either public or on the way to going public. Our philosophy has changed. We are now focused on taking the operating companies public. This changes the role of the parent or investment holding company quite a bit, hence the new plan.”
IPVG was started in 2005 with less than 30 people and one subsidiary with under PHP 100 million in revenues. Today, IPVG has grown into a group of over 12 companies; a total of close to 3,000 people, and in 2010 generated a net income after tax of PHP 145 million. In the first half of 2011, IPVG has generated over PHP 300 million in net income, easily surpassing its 2010 performance. In the group of 12 companies, 3 are public, and another few are in joint ventures with leading names such as PCCW Teleservices, GMA7, and Kennet Partners (USA). IPVG has secured relationships with Fortune 1000 firms such as Western Union, Salesforce.com, and Google.
The Group today has established a strong retail business through the acquisition of Netopia, the #1 Internet cafe chain in the country, and has also signed agreements to acquire the CyBr and I.T. Log chains. The Group already owns the Station 168 and i-Hooked brands of i-cafes. This brings total retail stores to approximately 200 establishments across the Philippines, servicing over 2.5 million customer visits every month. Furthermore, the Group’s remittance business under the Western Union brand has reached 407 outlets as of July 1, 2011. “When we look at our retail business, we want to become the dominant player in our category,” says the CEO. “We think in thousands of outlets not hundreds.”
“I think we have a very bright future ahead of us,” Gonzalez states. “The new plan will position us better to fully unlock and realize our true values at the holding company level.”
—
About IPVG Corp.
IPVG Corp. is publicly listed in the Philippine Stock Exchange (PSE: IP). Its subsidiaries operate in the following business segments: (i) Communications – IP Services and Internet Security (IP Converge Data Center, Inc., and Prolexic Technologies, Inc.); (ii) Content – Online Games and Mobile Solutions (IP E-Game Ventures Inc., and X-Play Online Games, Inc.); and (iii) Payment Solutions (I-Pay Commerce Ventures, Inc.). IPVG Corp. invests both funding and management expertise into incubation and early stage businesses related to the Internet. www.ipvg.com.